Is Geographical Proximity Necessary for Knowledge Spillovers within a Cooperative Technological Network? The Case of the French Biotechnology Sector

Is geographical proximity necessary for knowledge spillovers within a cooperative technological network? The case of the French biotechnology sector, Regional Studies. The models of the geography of innovation do not take into account the channels for spillovers diffusion. The main interest of this paper is to introduce cooperation as a channel of spillovers directly into the knowledge production function. This enables one to test if geographic proximity is a necessary condition for diffusion or if the development of a cooperative network, whatever the distance between partners, also allows this transmission. The main result is that the distance separating French or European partners does not constitute a barrier to knowledge flows. However, intra sector-based spillovers are found from surrounding areas, but not from further areas, when they are measured by an external stock of knowledge. These spillovers are localized as suggested by the literature.